📈 Market sector update
Markets have been fairly strong lately, but there might be some weaker sectors worth looking at.
Markets have generally reacted well following the Fed’s decision to cut rates (not to mention the strong economic data in the last few months). This data shows which sectors (as represented by their largest respective ETFs) have over/under performed, which sectors might be over bought 🔴 or over sold 🟢, and how their volume is trending ▲ or🔻.
Opportunities?
Healthcare (XLV) is trading well below its 50-day moving average and has underperformed the broader market for the last month. Healthcare tends to perform well in a bad economy, but there’s less reason to invest in “recession proof” stocks when the economy is strong.
Consumer Staples (XLP) is also trading well below its 50-day moving average and has underperformed the broader market for the last month. Similar to healthcare, consumer staples tends to be a sector that strengthens during a weak economy as people flock to companies that produce things we use every day (think Colgate, Procter & Gamble, General Mills, etc.).
Real Estate (VNQ) is a sector I’m not touching (too close to my day job and just too difficult), but it is well below its 50-day moving average.
All other sectors are trading well above their 50-day average. Volume is trending lower for almost all sectors which indicates that overall market enthusiasm is limited.
Note: This is for informational purposes only and is not intended to be personal financial advice; be cautious — there is always risk involved with financial decisions!